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1 Economics Suppose two pre-owned cars have caught a buyer's eye: Car 1 has been driven 20,000 miles and has fuel efficiency of 28 miles
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Economics Suppose two pre-owned cars have caught a buyer's eye: Car 1 has been driven 20,000 miles and has fuel efficiency of 28 miles per gallon, while Car 2 has been driven 35,000 miles and has fuel efficiency of 34 miles per gallon. a. If the buyer is currently torn between the two cars and you have a higher profit margin on Car 1, describe the type of additional car you should show them to maximize your profit on this transaction. Draw a corresponding diagram to illustrate your answer. b. What bias are you exploiting? C. Does standard economics expect this reaction to the introduction of the third car? ExplainStep by Step Solution
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